It’s sometimes hard to offer advice based on a small sample of a book. But based on just what you sent, this is displayed literary material (offset by different margins) within a Nemeth text (26.4.2 is correct for that). That means a blank line before and after and adjusted margins (5-3). If you choose to make Example a heading…it would be indented to cell 9 above the displayed paragraph. Or you could just keep the bold and make it a paragraph heading.
Cindi Laurent (for Lindy)